Uber Vows to Fight California Legislation on Gig Economy

Despite objections from Uber and Lyft, Gov. Gavin Newsom has said he would sign bill to curtail use of contract workers

For an increasing number of Americans, a patchwork of gig work is the norm, while others have become so-called independent workers because they take second jobs through digital platforms like Uber or Etsy to make ends meet. But nearly all face the challenges of inconsistent income and access to benefits. (Originally published March 21, 2018)

SACRAMENTO, Calif.—California lawmakers passed landmark employment legislation that challenges the business model of “gig-economy” companies such as ride-hailing giants Uber Technologies Inc. and Lyft Inc. But Uber immediately signaled defiance, saying it didn’t plan to change its practices in response to the measure.

The legislation, which intends to force companies to reclassify certain contract workers as employees, is considered a serious threat to Uber and Lyft, already losing billions of dollars a year combined, as...